Wix Beats Q4 EPS Expectations, Seeks 12%-14% Growth in 2025

In the fourth quarter of 2024, Wix.com Ltd. showcased notable growth, reporting a total revenue of $460.5 million, marking a 14% increase year-over-year. This growth was driven by the company’s Creative Subscriptions and Business Solutions segments, which generated revenues of $329.7 million and $130.7 million, respectively.

The Creative Subscriptions segment saw an 11% year-over-year rise, while Business Solutions posted a robust 21% increase. The fourth quarter also saw total bookings of $464.6 million, up 18% from the previous year, underscoring a strong demand for Wix’s services.

The company reported a GAAP net income of $48 million, equating to $0.86 per basic share or $0.80 per diluted share. On a non-GAAP basis, net income reached $117.1 million, or $2.10 per basic share and $1.93 per diluted share. Free cash flow for the quarter was $131.8 million, nearly doubling from the previous year, reflecting significant operational efficiencies and cost management.

Wix Reports Strong Results for Fourth Quarter 2024, Slight Miss on Revenue

Wix’s fourth-quarter performance exceeded market expectations, which had anticipated an EPS of $1.59 and revenue of $461.87 million. The actual non-GAAP EPS of $1.93 significantly outperformed these estimates, showcasing a strong end to the fiscal year. While revenue slightly missed the expected $461.87 million, the company’s ability to surpass earnings expectations reflects effective cost management and strategic pricing initiatives.

The company’s revenue growth was primarily fueled by its expanding Creative Subscriptions and Business Solutions segments, with the latter showing a particularly strong performance.

The 25% year-over-year growth in Business Solutions bookings indicates a growing demand for Wix’s transaction facilitation services, including Wix Payments and other commerce solutions.

Join our Telegram group and never miss a breaking digital asset story.

Wix Anticipates Continued Growth Across Key Business Segments in 2025, Expects 12% to 14% Growth Range

Looking ahead to 2025, Wix anticipates continued growth across its key business segments. The company projects full-year revenue between $1.97 billion and $2 billion, reflecting a 12% to 14% increase year-over-year. Bookings are expected to range from $2.025 billion to $2.06 billion, translating to an 11% to 13% growth. The company also forecasts a free cash flow margin of 30% to 31%, indicating ongoing improvements in operational efficiency.

Wix’s guidance incorporates potential FX headwinds, particularly from the strengthening US dollar against the Euro and British pound. Despite these challenges, the company remains confident in its ability to deliver strong financial results through strategic product enhancements and operational efficiencies.

The anticipated launch of new Self Creator offerings in 2025 is expected to drive further growth, although the company has taken a conservative approach by not factoring in significant contributions from these new products in its forecast.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.